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Nordic IT outsourcing market to consolidate as competition tightens

PA sourcing expert, Henrik Ringgaard Pedersen, has been quoted in an article in Computerworld discussing the results of PA Consulting Group’s and Whitelane’s annual IT sourcing survey.

The findings, based on responses from more than 330 participants at the top IT spending organisations in the Nordics, shows an increase in the level of outsourcing in the Nordics and Denmark. And 50 per cent of Danish companies are expecting to outsource more in the coming years than they did last year.

But Henrik explains that even though this is a growth market, there appears to be too many outsourcing suppliers in the Nordic region and we can expect to see a consolidation in the future.

“There are many suppliers in the Nordic region and, as a result, the competition is fierce. I believe we’ll see a high level of consolidation in the next few years to make way for large-scale operations, including acquisitions, mergers, partnerships and other new ways to deliver business,” states Henrik.

According to Henrik, outsourcing clients should note that the market is changing in other ways too. The differences between suppliers are becoming narrower as local suppliers find new ways to work, and Indian and other international suppliers gain more local presence.